Internet file-sharing services will be held responsible if they intend for their customers to use software primarily to swap songs and movies illegally, the Supreme Court ruled Monday, rejecting warnings that the lawsuits will stunt growth of cool tech gadgets such as the next iPod.

WaPo says the EFF lost. It will be interesting to see what the EFF says. The reasoning seems reasonable, but consider that this same reasoning might prohibit the distribution of hacking tools, for example.

Court: File-Sharing Services May Be Sued